No benefit for Aboitiz firm from WESM price movement
Please allow us to clarify the reference to the “Aboitiz Group” in the front-page article titled “Collusion eyed in power rate hike” (Front Page, 12/11/13).
Aboitiz Power Corp.’s subsidiary, Therma Mobile Inc. (TMO), which operates the diesel power barges moored in Navotas, does not benefit from any WESM (Wholesale Electricity Spot Market) price movement because it is paid an agreed rate under its Power Supply Agreement (PSA) with Meralco.
One hundred megawatts of its capacity was only utilized by Meralco starting Nov. 12, 2013. The balance of 130 MW will be available by mid-2014 once the connection line is restored.
Under its capacity-based contract, Meralco has full control of the use of the 100 MW from TMO, including pricing and volume offers to the WESM. TMO is only paid the rate covered by PSA and does not benefit from the high market prices. This rate has provisional-approval from the Energy Regulatory Commission.
We would also like to clarify that the Bauang Diesel Plant is not owned nor operated by Aboitiz Power Corp. or any of its subsidiaries.
We in Aboitiz Power reiterate our commitment to provide reliable and ample power supply at a reasonable cost to support the Philippines’ energy needs.
—SUSAN V. VALDEZ,
chief reputation and risk management officer,
Aboitiz Power, Bonifacio Global City,
Taguig City
